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Last Updated : Jan 15, 2020 11:00 AM IST | Source: Moneycontrol.com

Hot Stocks | Ircon, 2 other stocks that you can buy for short-term gains

On the technical front, both Nifty and Bank Nifty are trading in a rising channel. However, Bank Nifty is facing a strong hurdle in the zone of 32,200-32,350.

Moneycontrol Contributor @moneycontrolcom
 
 
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Shitij Gandhi

Nifty hit a fresh record high on January 15 and ended above 12,350 as easing geopolitical tensions between the US and Iran along with the expectation of a US-China trade deal lifted sentiment.

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On the derivative front, put writers were seen adding hefty open interest at 12,300 strike for January 16 series expiry while marginal call writing was observed at 12,500 strike.

On the technical front, both Nifty and Bank Nifty are trading in a rising channel. However, Bank Nifty is facing a strong hurdle in the zone of 32,200-32,350.

We believe that a decisive move beyond 32,350 in Bank Nifty can add further momentum to the prices which could take the banking index towards its record level as well. So, any dip in the prices towards support levels should be used to create fresh longs.

The immediate support for Nifty is placed at 12,300 while for Bank Nifty, 31,800 should act as a strong support level.

Here are three buy calls for the next 3-4 weeks:

Amara Raja Batteries | Buy | LTP: Rs 759.40 | Target price: Rs 818 | Stop loss: Rs 710 | Upside: 7.72%

The stock tested Rs 784-mark in the month of November and then once again retraced back towards Rs 710 to take support at its 100-days exponential moving average on daily charts.

At the current juncture, the stock has made a double bottom pattern at Rs 704 and bounced back sharply thereon to once again reclaim Rs 750. Additionally this week, the stock has also given a breakout above the key resistance levels of Rs 760 after a prolonged consolidation of more than five weeks.

Traders can accumulate the stock in the range of Rs 750-760.

Trent | Buy | LTP: Rs 562 | Target price: Rs 611 | Stop loss: Rs 520 | Upside: 8.72%

The stock has been maintaining its bull-run and seen trading in a rising channel with the formation of a higher high and higher bottom pattern on the daily and weekly intervals.

At the current juncture, the stock has given a fresh breakout this week above the key resistance level of Rs 560 along with positive divergences on secondary oscillators which points towards more upside at the prices moving forward.

Traders can accumulate the stock in the range of Rs 555-560.

Ircon International | Buy | LTP: Rs 445.65 | Target price: Rs 491 | Stop loss: Rs 415 | Upside: 10.18%

After taking support at its 200-days exponential moving average on the daily charts, the stock made a rounding bottom pattern and once again surpassed Rs 445-mark in a short span of time.

From the last five to six trading sessions, the stock has observed a sudden rise in volumes with a rise in price which suggests long build-up into the prices.

Traders can accumulate the stock in the range of Rs 442-447.

(The author is a Senior Technical Analyst at SMC Global Securities)

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Jan 15, 2020 08:34 am
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